Restatement shows SouthGobi did better in first half 2013 than first reported

CP

VANCOUVER - SouthGobi Resources Ltd. (TSX:SGQ) is restating its financial reports for the first half of 2013 and the previous three years, and reporting a bigger third-quarter loss than analysts expected.

The Mongolia-focused coal company's results fell short of estimates compiled last week before the restatements were issued Monday morning.

SouthGobi's loss for the three months ended Sept. 30 was US$41.9 million or 23 cents per share — down from a restated $46.4 million or 26 cents per share a year earlier — while revenue was $15.6 million.

Estimates compiled before the restated numbers were released called for SouthGobi's third-quarter loss to decline to five cents per share, compared with 18 cents per share in the three months ended June 30.

In brief, the restatements show the mining company's loss in the first six months of this year was slightly smaller and revenue much higher than reported in August.

For the six months ended June 30, SouthGobi's net loss was $56.8 million or 31 cents per share, a penny less than previously reported, while SouthGobi's revenue in the first half of 2013 was $6.9 million higher than previously reported at $10.5 million.

Note to readers: CORRECTS that loss was down, not up from year earlier.